2014 BCE Q4 Press Release

For Immediate Release This news release contains forward-looking statements. For a description of the related risk factors and assumptions please see the section entitled “Caution Concerning Forward-Looking Statements” later in this release. BCE reports 2014 Q4 and full-year results, announces 2015 financial outlook Common share dividend increased 5.3% to $2.60 per year Net earnings attributable to common shareholders of $542 million, up 9.5%; Adjusted net earnings grow 13% to $610 million; Adjusted EPS of $0.72, up 2.9% 10.6% higher Bell Wireless Adjusted EBITDA driven by accelerated revenue growth of 9.6% on 5.5% increase in blended ARPU Total BCE wireless postpaid net customer activations in Q4 of 118,120 Second consecutive quarter of positive Bell Wireline Adjusted EBITDA growth, up 2.0% Activated 76,074 net new BCE IPTV customers and 52,010 net new BCE Internet customers as IPTV fibre footprint expanded to more than 6 million customer locations Free cash flow grows 23.6% to $833 million; full-year 2014 free cash flow up 6.7% Bell Media maintains leading TV audience levels and ratings as TSN and RDS affirm their position as Canada’s top specialty channels 2015 outlook builds on positive operating momentum and execution of Strategic Imperatives, supporting dividend increase and significant capital investment MONTRÉAL, February 5, 2015 – BCE Inc. (TSX, NYSE: BCE), Canada’s largest communications company, today reported BCE and Bell fourth quarter (Q4) and annual 2014 results, announcing its financial guidance for 2015 and a $0.13 per share hike in the BCE annual common dividend to $2.60. FINANCIAL HIGHLIGHTS ($ millions except per share amounts) (unaudited) Q4 2014 Q4 2013 % change 2014 2013 % change Bell (i) Operating Revenues 4,940 4,813 2.6% 18,734 18,109 3.5% Adjusted EBITDA(1) 1,730 1,693 2.2% 7,066 6,817 3.7% BCE Operating Revenues 5,528 5,382 2.7% 21,042 20,400 3.1% Adjusted EBITDA 2,022 1,998 1.2% 8,303 8,089 2.6% Net Earnings Attributable to Common Shareholders 542 495 9.5% 2,363 1,975 19.6% EPS 0.64 0.64 - 2.98 2.55 16.9% Adjusted EPS(2) 0.72 0.70 2.9% 3.18 2.99 6.4% Cash flows from operating activities 1,527 1,838 (16.9%) 6,241 6,476 (3.6%) Free Cash Flow(3) 833 674 23.6% 2,744 2,571 6.7% Free Cash Flow per share(3) 1.01 0.86 17.4% 3.46 3.31 4.5% (i) Bell includes the Bell Wireless, Bell Wireline and Bell Media segments. 1/17 “The Bell team’s hard work in executing our strategy of broadband network and service investment, efficient operation and improved customer service is delivering for all our stakeholders – unmatched network and product innovation for Bell customers; strong value for BCE shareholders, including the announcement of our latest dividend increase; and unparalleled investment in the community with another record Bell Let’s Talk Day campaign. These strong Q4 and 2014 results prove Bell is a bold competitor focused on leading in the growth services of Canadian communications – wireless, TV, Internet and media,” said George Cope, President and CEO of BCE Inc. and Bell Canada. “Bell Wireless delivered exceptional customer additions and strong revenue growth, including a significant quarterly increase in average revenue per customer as smartphones and data services soar in popularity. With fast-growing Fibe TV and Internet leading the way, we recorded our first quarter of growth across each of Wireline revenue, EBITDA and wireline residential customer net additions since the introduction of cable telephony a decade ago. Bell Media continued to set the pace in Canadian multimedia with ongoing leadership in conventional and specialty TV, radio and now, with CraveTV, the burgeoning on-demand video streaming marketplace.” Bell is dedicated to achieving a clear goal – to be recognized by customers as Canada’s leading communications company – through the execution of 6 Strategic Imperatives: Invest in Broadband Networks and Services, Accelerate Wireless, Leverage Wireline Momentum, Expand Media Leadership, Improve Customer Service, and Achieve a Competitive Cost Structure. “Financially, we enjoyed a successful 2014, comfortably achieving all our financial guidance targets for the year. Our consistent performance delivery, year after year, shows the strength of the business model Bell has built around our 6 Strategic Imperatives. While the communications industry is marked by intense competition and dynamic change, we have leveraged our business model to produce results consistently at or above expectations,” said Siim Vanaselja, Chief Financial Officer for BCE and Bell Canada. “Going into 2015, BCE’s operating momentum and financial foundation is strong. Our financial targets for this year reflect our expectation for continued strong Wireless segment profitability, positive growth in Wireline segment performance, as well as healthy earnings and free cash flow growth from operations to support our substantial capital investment in strategic network infrastructure and a higher BCE common share dividend for 2015.” COMMON SHARE DIVIDEND INCREASE Today’s dividend announcement represents BCE’s 11th increase to its annual common share dividend, representing a 78% increase, in the past 6 years. The BCE annualized common share dividend will increase 5.3%, or 13 cents per share, from $2.47 to $2.60 effective with BCE’s Q1 2015 dividend payable on April 15, 2015 to shareholders of record at the close of business on March 16, 2015. With this increase, BCE will maintain the dividend payout ratio(4) within its target policy range of 65% to 75% of free cash flow. The higher dividend for 2015 is fully supported by higher expected free cash flow generation and a strong business outlook for 2015. VOLUNTARY PENSION PLAN CONTRIBUTION BCE made a $350 million voluntary pension plan contribution in December 2014 to align the funded status of Bell Aliant’s defined benefit pension plan with the strong solvency position of the Bell Canada plans, reducing the amount of BCE’s future pension obligations. The voluntary contribution was funded from cash on hand at the end of 2014. Accelerating the funding of BCE’s future obligation is an efficient use of cash given the market’s general expectation for a sustained low interest rate environment. 2/17 GLENTEL ACQUISITION On November 28, 2014, BCE announced a definitive agreement to acquire all of the issued and outstanding shares of GLENTEL Inc., a Canadian-based dual-carrier, multi-brand mobile products distributor, for a total consideration of $594 million. GLENTEL shareholder approval was obtained at a special meeting of shareholders on January 12, 2015, and court approval was obtained on January 14, 2015. The transaction is expected to close in Spring 2015, pending Competition Bureau approval. BCE has entered into an agreement to divest 50% of its ownership interest in GLENTEL to Rogers Communications Inc. following closing of the acquisition. Rogers will pay BCE approximately $392 million in cash, resulting in the reduction of BCE’s net cost of acquiring its retained 50% ownership interest in GLENTEL to $202 million. The Rogers transaction is expected to close shortly after BCE’s acquisition of GLENTEL, subject to customary closing conditions including regulatory approvals. A RECORD BELL LET’S TALK DAY The signature annual event in Bell’s national mental health initiative, Bell Let’s Talk Day on January 28 grew the conversation about mental health and the promise of a stigma-free Canada like never before. Led by Bell Let’s Talk national spokesperson Clara Hughes, Canadians and people worldwide sent a record 122,150,772 tweets, texts, calls and Facebook shares in support of mental health on Bell Let’s Talk Day – and with a Bell donation of 5 cents per interaction, drove $6,107,538.60 in new funding for mental health programs. With a 58% increase in tweets compared to 2014, Bell Let’s Talk was the #1 Twitter trend in Canada and #1 worldwide. Based on 4 action pillars – anti-stigma, care and access, research and workplace leadership – and providing funding for leading mental health hospitals, research institutions and community groups in every region, Bell Let’s Talk has now committed $73,623,413.80 to Canadian mental health. To learn more, please visit Bell.ca/LetsTalk. RESTART: ANOTHER FIBE TV INNOVATION The latest enhancement from Bell Fibe TV, the exclusive new “Restart” feature enables customers to rewind and watch TV shows already in progress from the beginning. Another Canadian first from Fibe TV introduced February 2, Restart supports thousands of shows from networks including CBC, CTV, Global TV, HBO Canada, Super Channel, TSN and many more. Restart underscores the innovation and choice represented by next-generation IPTV services like Fibe TV, the result of Bell’s strategic focus on leading investment in Canada’s advanced broadband networks and services. Like the robust wireless subscriber and data services growth propelled by Bell’s rapid deployment of mobile 4G LTE, ongoing fibre expansion is driving strong additions in Bell’s IPTV and Internet growth services. The Fibe TV footprint now covers more than 5 million households, up from 4.3 million at the end of 2013. Including Bell Aliant’s service area, BCE’s total IPTV footprint now exceeds 6 million customer locations. BCE RESULTS BCE operating revenue grew 2.7% to $5,528 million in Q4, reflecting higher revenues at Bell and Bell Aliant. Adjusted EBITDA was up 1.2% to $2,022 million, driven by healthy growth at Bell that was partly offset by a year-over-year decline at Bell Aliant. For the full year 2014, BCE operating revenue and Adjusted EBITDA increased 3.1% and 2.6%, respectively.

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